NEW DELHI: The government on Saturday said that there is no payment hurdle for Iranian crude imports in the country, and that India has imported crude from Iran as well.
The response came after a news report claimed that an Iranian crude cargo was being diverted from Vadinar, India, to China due to "payment issues". The petroleum ministry, in a social media post, called these claims factually incorrect and said that the country imports crude oil from more than 40 countries, with companies having full flexibility to source oil from different regions based on commercial considerations.
"Amid Middle East supply disruptions, Indian refiners have secured their crude oil requirements, including from Iran; and there is no payment hurdle for Iranian crude imports, contrary to the rumours being circulated," clarified the petroleum ministry in the social media post.
On April 3, 2026, according to ship-tracking firm Kpler, an Iranian tanker carrying crude oil that was en route to India over the past three days changed course and is now heading towards China instead. The vessel is bound for the port of Dongying, with an expected arrival on April 29, instead of its earlier destination of Vadinar.
According to Kpler, the rerouting was likely linked to payment-related issues, but the firm also mentioned that the ship could still be redirected to an Indian refinery.
The tanker Ping Shun is carrying about 600,000 barrels of crude oil loaded from Kharg Island around March 4. Earlier, it was expected to arrive at Vadinar on April 4.
The ongoing conflict between Iran and Israel, has impacted cargo movement through the Strait of Hormuz—a critical passage that handles around 20% of the world's crude and 25% of gas supply.
In response to the situation, the United States issued a 30-day sanctions waiver for Iranian oil already at sea. As per the Office of Foreign Assets Control, the waiver applies to oil loaded on vessels on or before March 20 and discharged by April 19.
The petroleum ministry further said that claims about vessel diversion ignore how oil trade works. According to the ministry, bills of lading often carry indicative discharge destinations, and cargoes can change ports mid-voyage based on trade optimisation and operational flexibility.
"It is reiterated that India's crude oil requirements remain fully secured for the coming months. On LPG too, some claims being made are incorrect as LPG vessel Sea Bird carrying around 44 TMT Iranian LPG berthed at Mangalore, India on April 2 and is currently discharging," said the ministry.
Iran was once a major oil supplier to India, but imports were halted after US sanctions were imposed. Currently, nearly 90% of Iranian oil exports are directed to China.
Meanwhile, the government, in a daily press briefing, said that LPG vessel Green Sanvi has safely transited the Strait of Hormuz, carrying 46,650 MT of LPG cargo with 25 seafarers on board.
A total of 17 Indian-flagged vessels, with 460 Indian seafarers, remain in the western Persian Gulf region.
The government also said that the supply of LPG has been affected due to the prevailing geopolitical situation. Despite this, there is no reported shortage at LPG distributorships, and around 51 lakh domestic LPG cylinders were delivered on Friday.
Another major step taken by the government is the formation of a three-member committee of Executive Directors from IOCL, HPCL and BPCL.
This committee, in consultation with state authorities and industry bodies, is finalising a plan for the sale of commercial LPG in states and Union Territories. A total of 72,047 MT of commercial LPG has been sold since March 14, 2026.
